Nigeria’s Debt Management Office (DMO) successfully allotted N929.32 billion across three Federal Government of Nigeria (FGN) bond offerings at its July 2026 bond auction. This allocation came after investors submitted bids worth a substantial N1.74 trillion, reflecting sustained appetite for government securities.
The auction, held on July 20, 2026, featured the re-opening of the 22.60% FGN January 2035, 16.2499% FGN April 2037, and 15.45% FGN June 2038 bonds. Settlement for these bonds is scheduled for July 22, 2026.
July 2026 FGN Bond Auction Details
The DMO reported that investors submitted a combined 556 bids valued at N1.74 trillion, with 308 bids ultimately accepted across the three bond tenors. Although the DMO initially offered N1.2 trillion across the instruments, it allotted about 77.4% of the amount offered due to strong investor demand.
For the 22.60% FGN January 2035 bond, subscriptions totaled N555.47 billion, with N245.73 billion allotted at a marginal rate of 18.34%. The 16.2499% FGN April 2037 bond recorded the highest demand, attracting N665.19 billion in subscriptions, and N381.46 billion was allotted at a marginal rate of 18.35%.
The 15.45% FGN June 2038 bond received N518.00 billion in subscriptions. From this, N302.13 billion was allotted to investors, including a N50 billion non-competitive allotment, at a marginal rate of 18.40%.
The DMO confirmed that while successful bids were allotted at the respective marginal rates, the original coupon rates of 22.60%, 16.2499%, and 15.45% would be maintained. This July auction underscores continued investor confidence in Federal Government securities, with total subscriptions exceeding the amount offered by more than N540 billion.
Demand remained strongest for the longer-dated April 2037 bond, indicating investors’ willingness to secure attractive yields amidst expectations regarding future interest rate movements.
The Appeal of Federal Government Bonds
This July auction follows a similar exercise conducted in June 2026, where the DMO reopened two FGN bonds to raise a combined N1.2 trillion. Under that offer, N600 billion each was made available in a 10-year and a 20-year bond reopening, with settlement completed on June 24, 2026.
FGN bonds are long-term debt instruments issued by the Debt Management Office on behalf of the Federal Government. They serve to finance budget deficits and support public spending, providing investors with fixed coupon payments throughout the bond's life, with the principal repaid at maturity.
These bonds are considered benchmark fixed-income instruments in Nigeria because they are backed by the full faith and credit of the Federal Government. They also qualify as trustee investments under the Trustee Investment Act and are recognized as government securities for tax-exempt investment purposes under the Company Income Tax Act and Personal Income Tax Act.
